thanks for inviting us into your home tonight. we'll see you right back here tomorrow. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- shepard: you're credit card numbers may have been stolen. 130 million of them were targeted. and health care reform. is the government-run plan dead or what? i'm shepard smith. the news starts now. >> facts not fear. facts not fear. shepard: americans have debated it in screams and fury. >> we do not want some bureaucrat telling us when we can go to the doctor. >> you and your cronies in the government do this kind of stuff all the time. >> kill the bill! >> where are the people protecting us in government? >> say no to socialism. shepard: but, tonight, part of the battle may be over.

because, tonight, the plans for government-run health care may be dead. oh, but is it? again on who is doing the talking, really. because, right now, we are getting mixed signals from the obama administration. you have been hearing a lot about what the white house calls the health care public option. that's an insurance program to be run by the federal government instead of by private companies to sort of coexist with the privates. critics say that path leads to complete nationalization of health care. supporters say it will help private insurers keep the private insurers on check on costs and services. it's generated a lot of controversy. not to mention some pretty passionate exchanges at town hall meetings across our land. over the weekend, at one of those town halls, president obama appeared, a' appeared to accept back from a government option saying it isn't the only critical piece of reform. then, yesterday, his secretary of state of health and human services, kathleen sebelius added. a government run option is not

the essential element. but that doesn't mean it's necessarily out. apparently. one source in the administration now says secretary sebelius misspoke. a senior official insists not one thing has changed. so where are we? shannon bream has some answers. she is live on capitol hill. shannon, the administration seems to be looking for some sort of middle ground on health care but isn't finding much of it. >> you know what it sounds like, it sounds like they're floating this idea to see what kind of reaction they are going to get. the president had been very hard line on the issue of a public option, but you have pointed out just how much it sounds like maybe that's turning this weekend. well, when that is brought up, can i tell you the white house press secretary robert gibbs said a short time ago, if you look back over months of what we have been saying, you will find a, quote, boaring consistency to our rhetoric. the white house certainly does not want to paint it as any kind of major change. shepard: the president said during campaigning and after that a public option or government-run plan must be part of a reform package. supporters from the left say they want it badly.

now they are insisting no public option means the president is flip flopping and costs might be coin takenned. >> you are absolutely right. they are mad. they are firing back today. we got statements from all over capitol hill, inside and outside the beltway, we are hearing back from lawmakers who say wait a minute. what we have supportside a public option. house speaker nancy pelosi was quick to point out all three versions in the house have the public option. i can tell you another democrat has come out and warned the president saying if you are thinking of trading away the public option for a few senate votes, keep in mind you could lose up to 100 votes in the house if you make that move. shep? shepard: all right. that wouldn't work at all. we have also heard talk of a nonprofit health care, sort of co-opt as a alternative. >> this is a bit confusing to most folks. senator kent ron rad says this is what i came one those oppose the public option and those who want it. not government controlled or government run. it puts power in the hands of the co-opt members. provides a nonprofit competitor

for those for-profit insurance companies. it might be some middle ground. he is a part of that bipartisanship gang of six it might be one of the key pieces of puzzle to get this thing done. shepard: the white house is making some changes because of a health care email controversy. fox news revealed that the administration was sending people unsolicited emails about health care reform. >> do you in any way seek databases or information about people who might be. >> i will certainly check. i'm not under that impression. >> they would like to know how they got an email from the white house when they have never asked for one. >> i would be interested to see who you gotcha email from and whether or not they are on the list. >> well now he has. jed, three days after that exchange a white house spokesman said the problem may have happened because of third party groups that signed up people for white house emails but didn't tell them according the to iment stavment.

shepard: but that system did have a problem. now the white house reports it's taking steps to keep this from happening again. you saw major garrett raise the initial question there. is he live at the white house tonight. what's the administration doing to fix this? >> two things, shepard. first, i want to talk about something that's not related directly to this unrequested email controversy. but it has been a separate controversial related to email submissions to the white house. many of our viewers may be aware of the flag at white house.gov. that was a program the administration a couple weeks ago where people could send in information that they considered to be erroneous or, quote, unquote fishy about health care in this debate. that flag at white house.gov, perceived by some, as sort of a snitch factory, though the white house would never so characterize it is now over. if you try to send an email there it gets bounced back

saying that email is no long are in service. the second change today, shepard, is if you go to the contact us portion of the white house web site, you can opt out of receiving emails. then there is a read-in verifier where you can confirm that that's a step by which the white house people want emails get them. people who do not want them will not receive them. shepard: who are these groups according to the white house could have added people's names to this list. >> shepard, i want to be very careful about. this this is a theory. white house officials say it's their leading theory but there is no absolute proof and we have talked to part-time w themselves build a theory on this original white house theory. that is to say they are members of groups and think that they might have signed them up. we talked to somebody today who is a member of freedom works. a grass roots conservative organization that's been very vocal in the health care debate. they wonder if freedom works might have sent their email address in as far as commenting to the white house negatively about health care. we talked so somebody else today who believes gov delivery private firm that delivers

government documents might have also used their email address sending it to the white house for reasons unknown. we don't have any proof of this shepard. these are theories based on folks we talked to today. again that's a theory based on the original white house theory i want to be very careful. we can't confirm this absolutely across the board. shepard: critics have accused the white house of sending out spam emails. i won gear if there is any evidence of that who cares all you have to do is hit click delete. >> who cares is obviously one part of this debate. how big is emails that you want to receive when you can unsubscribe rather quickly. the deeper privacy concern is that if people's email address wound up where they wouldn't want them to be on a government web site, there is some general concern about that there is no evidence whatsoever this was an intentional white house driven spamming operation. white house officials deny that up one side, down the other. one former bush administration official had this to offer about the whole controversy. >> the obama white house developed their own web site. they are in charge of white

house.gov. what people do on there, they are responsible for monitoring that they are responsible for making sure that people can't misuse white house.gov. and on that point, they failed. >> in this respect, shepard a very internet savvy campaign and white house making a few changes. shepard: changes indeed. major garrett at the white house. thank you, sir. important fox news weather alert now. and the first hurricane of the atlantic season is right now gaining strength across the open atlantic tonight. hurricane bill it's called and two tropical storms as well have formed just over the past couple of days. >> more on those events in just a moment. bill's path just hours after it formed early this morning. wind speeds topped 90 miles per hour. and now it's on track for bermuda and potentially, at least, the east coast. forecasters are predicting bill will become a major storm by wednesday. a category 3 at least.

domenica davis is in the weather center tonight. does this thing hit land or go off or what? >> we have two scenarios. we will show you those in a minute. here it is on the radar. very classic hurricane. it's all coming together. expect it to be a category 2. possibly as early as tonight and then a major category 3 by wednesday. high pressure, this is the key factor and it's sitting just to the north of bermuda. here's the current models and it's factors in this high pressure. now, if the high pressure stays strong, it looks like that the path will continue more to the northwest. if it weakens a little bit, then, hurricane bill will turn more to the north and that means it stays in the open waters of the atlantic national hurricane center is going with it did break down a little bit and trend north to the open waters. still a long ways to go with this system. we have to watch it closely. that high pressure sitting to the north of bermuda. that will be the major factor in

the next couple of days. shep? shepard: coverage on the tv, on the radio and fox news.com. as forecasters track bill, tropical storm claudette made landfall in florida soaking the panhandle as it weakened to a tropical depression this morning. claudette bringing heavy rains to alabama and northeast portion of mississippi. it's not expected to cause any significant flooding or wind damage. same time, tropical storm anna said to be weakening tonight as it hits to the dominican republic. americans have fought and bled for our nation, if anybody has earned the right to ask tough questions. it's they. today president obama addressed them directly about iraq, about afghanistan, and about what's next for this nation. his comments and their reactions just ahead. and credit card fraud on a scale that no one has ever seen. we will tell you how criminals got their hands on tens of millions of our account numbers and what they did with them.

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shepard: this thing is a bear. they are calling it the largest case of credit and debt card data theft of all time. the feds have now charged a man from miami with trying to steal 130 million account numbers. right now he is in jail awaiting trial on other charges. but that's not all. prosecutors also claim that suspect was a double agent, working as a secret service informant while helping his hacker buddies at the same time. our news correspondent steve centanni is in d.c. tonight. what do card holders need to know here. >> as always, keep a close eye on your accounts, if you see anything fishy, report it right away. not clear if any of these credit card numbers or any personal information was actually sold. according to the complaint, that's exactly what the suspects intended to do. the justice department gave a lot of detail about how the hacking was allegedly done, but

they gave no information on what became of the stolen data. that's kind of a mystery, shep. shepard: that is a mystery. how exactly do the feds believe these guys operated? have they said? >> well, yeah, it was very sophisticated. according to the complaint. authorities saying 28-year-old albert gonzalez of miami, working with two unnamed russian conspirators scoped out a point of sale locations where credit card transactions were taking place at five different corporate locations including 7/11 outlets and stores owned by hanaford a grocery store chain owned in maine. sneaked past fire walls and sniffers to tract ongoing transactions. they allegedly store the info on servers five u.s. and overseas locations. shep. shepard: as for this suspect from miami, steve, it's not his first daly into things. tell us about the wrap sheet. >> not really. when this indictment came down

he was already awaiting trial for previous hacking case last year. in that case he stole some 40 million credit card numbers. this time he broke his old record and set an all-time record of 130 million. if he is convicted he could spend 25 years in prison. shep. shepard: president obama speaking directly today to the men and women who fought for america's -- fought america's battles overseas. the president in phoenix for the annual convention of the veterans of foreign wars. president obama stuck to his previous promises. get american troops out of iraq and win the war in afghanistan. that second promise coming with a warning. it's going to take a while. jennifer griffin works the pentagon for us. the president did not say whether he would send more troops to afghanistan. >> that's right. but he did promise difficult days ahead. here is what he said, shep. >> this will not be quick. nor easy. but we must never forget. this is not a war of choice. this is a war of necessity.

those who attacked america on 9/11 are plotting to do so again again. >> but, again, no commitment of troops. shep. shepard: why is this troop issue such a political football for the president? >> well, mostly because his supporters on the left are very concerned about getting into any sort of quagmire. just last week defense secretary robert gates warned again about creating too large a footprint for u.s. troops in afghanistan. and we understand from defense officials that general stan mccrystal, the top u.s. commander out there, is now looking at every soldier who is sitting behind a desk and may ask some of them to move out to the field so that he doesn't have to ask for more troops. shepard: jennifer griffin life at the pentagon. thanks. it flat out disappeared as one of the busiest shipping leans on earth. now, weeks later, that cargo ship and its crew are safe and sound but are we any closer to figuring what happened? remember the ship? so many questions about what was on it. speaking of mysteries, the british government has opened

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shepard: british government has now released thousands upon thousands of pages of documents on unidentified flying objects. the new reports on ufos detailing the strange things seen in the sky. top secret until now military programs. just about everything, except well little green men. 800 supposed encounters from the 1980s and 90's. some the reports are really kind of silly like a ufo that turned out to be an illuminated blimp. others are more mysterious even to diehard skeptickings. for example, a strange glowing object spotted near air force base in england.

report to make this one hard to write off. jonathan hunt is from great britain so he is covering this for us tonight. if it's not a hoax or something weird, what is it. >> it's is known as a forest incident. if it was a brit seeing weird things it might be easy to dismiss as uncommon ramblings english man a popular brew in the sight. whatever happened on that dark night it was apparently witnessed by apparently sober american air men. the brits still can't -- or won't explain it. ♪ >> the early morning hours of december 27, 1980, two us air men see strange lights outside the royal air force base in england. they leave the base to track the lights and find according to their commanding officer's memo a strange glowing object in the forest, metallic in appearance and triangular in shape. the object was hovering or on

legs. as the patrolman approached the objects it maneuvered through the trees and disappeared. the next day a search party finds strange indentation on the grounds and unusual radiation readings. the brits investigate and apparently find no evidence of anything having intruded in u.k. airspace. but neither do they find an explanation. a ministry of defense letter to a concerned citizen dismisses the incident. and, in that condescending british fashion, tells the unidentified person you might like to buy the latest issue of the magazine "focus" which looks at the rendlesham forest case and concludes that the light scenes from the light house. yes, that explains it a light house three miles away on a pitch black december night obscured by a thick forest, look to those who saw it like a metallic glowing object hovering and then suddenly taking off through the trees. clearly someone has been drinking but i'm not sure it's the men who saw the ufo.

now, that's not to say that some ufo sightings aren't cocktail-induced. sightings peaked in the uk in 1996. the same year that an alcoholic lemonade called hooper's hooch became the drink in the country. and same year mad cow disease gripped britain. surely no coincidence. shepard: is it like zima trgets is but much more dangerous. >> and everyone drank it. >> from the age of 12 and onwards. shepard: thank you. if a medicare program works for patients and less. why would anyone want to get rid of it. there suspect mover to this. the catch and what the advocates are saying. we will report. you decide. ner sign of the times. another country's biggest cities so strapped for cash it was closed today. what town is next? i say brace yourself.

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shepard: we seem to be a step or two closer to solve ago major mystery tonight. the russian manned cargo ship that went missing in europe has now been recovered and we're told its 15-member crew is fine. russia's navy finally found the artic sea off the west coast of africa on friday. nearly three weeks after it vanished. now russia says it was not under anyone else's control when it was located. there were reports that the ship had been boarded by masked men

off the swedish coast, sparking fears of a rare pirate attack in european waters. the crew now being questioned on a russian sub. i'm shepard smith. this is fox report hd. it's the bottom of the hour. time for the top of the news. and signs tonight that civility may have returned to the health care debate. that's not to say the protesters are putting down pick set science. today in phoenix two opposing groups rallied outside an event where president obama was speaking. even though that speech was limited mostly to military affairs. inside several town halls over the last couple of days people have been respectful and outside some demonstrators on both sides have been speaking commonly and reasonably. listen to these guy two guys outside a town hall in dallas. >> i think that health care reform is one of the single most important issues since civil rights. i mean, there can't be equality and justice when over 40 million americans don't have access to health care. >> those folks that have been paying attention know that the -- that it's really -- it's

really designed to get rid of private health insurance. those of us that realize that private health insurance is the vehicle that keeps most of us healthy. shepard: folks like that perhaps breaking the ice for more rational debates. one of the big topics being discussed in these conversations with a program called medicare advantage. now, many people on that program swear by it they say it works better and costs them less. president obama wants to cut it. he says it does not work any better. and getting rid of the program could save more than $170 billion in the next decade. neath vogel is checking the facts for us live in l.a. tell us about medicare advantage. what is it and how is it different from traditional medicare? >> well, hi there, shep. good question. think of medicare advantage of more like a managed care hmo. senior citizens can buy in through private insurance companies. what they get in return is more personalized attention. a case manager that guides them and fav gates them through doctor's appoint beings and

their care. that's something you don't get with regular traditional medicare. shepard: how many people would be affected here if the president does get rid of this program? >> well, quite a few, shep. right now there are more than 10 million senior citizens enrolled in the program. we spoke to two here in california. maurice englemann and patricia long, they are both cancer survivors. they say any never would have recovered without the care that they got, the coordinated care through medicare advantage. in fact, they recently went to washington, d.c. to meet with key members of congress to lobby to try save the program. they met with barbara boxer. they also met with senator arlen specter. they presented them with 10,000 positions to try to save this program. but the reality is, shepard, there are likely to be cuts. there are a number of senate committees talking about big cuts right now. shepard: aneath vogel live in los angeles. thanks. city workers in chicago got a day off, without pay. it's part of a plan to save some jobs. the city shut down its

libraries, its health clinics and even stopped garbage collection for a day. police and other safety workers are still on the job. steve brown with the news. he is live in chicago in this afternoon. the city plans to safe more than million dollars with three of these service days. that doesn't sound like a heck of a lot. >> no. but do you have to exin it with nonunion employees, white collar or managers if you will that are also being asked to take up to and in excess of three weeks. city hall says combined, the union, nonunion, that number is $34 million. it's a little bit more of a significant savings. shepard: other cities has done this as well, right? >> there are. already dallas and denver have done it. lodi and tulsa, oklahoma will do it. chicago has two more of these inservice days or lack of payday paydays yet to be scheduled. shepard: what do you think the impact of this will be? >> well, $34 million towards a 300-million-dollar potential

short fall isn't much. that's the city's number. now they are taking look half a million dollars. how do they stem that gap? certainly furloughs aren't going to make it then the question comes ok does the city raise taxes? does the city cut services or a combination of both? >>no. shepard: steve brown reporting from chicago. thanks. an american icon has fallen victim to tough financial times and changing technology. readers digest. today the manage screen publisher announced it's filing chapter 11 bankruptcy production. circulation problems and advertising. readers digest been around since 1922 many people know it as the way they read just about everything from short stories to news articles. condensed from larger versions and other publications. and, of course, there are the clean jokes submitted by readers. we picked one for your enjoyment. something to, i don't know, helped bat news go down easier. where does a king keep his

armies? in his sleeveys, of course. h1n1, there is word tonight of a major hickup in the fight against the pandemic flu strain. the u.s. government overestimated the number of h1n1 vaccine doses it expects to have for the fall by a lot. previous estimate 120 million doses by mid october. thought department of health and human services has slashed that number to just 45 million. officials blaming the delay on manufacturing process. the united states will need 600 million doses to immunize all those needing the h1n1 vaccine. well, to another health concern now. we usually hear about binge drinking be with a problem among college students. new t. may be less of an issue for younger folks than their parents. researchers of duke surveyed thousands of people age 50 to 64. they report 22% of men reported binge drinking in the previous

month. 9% of women said the same. the study considered a binge to be five or more drinks at one time. not simultaneously but one of a after number, i suppose. older people are at greater risk because of they metabolize more slowly and more likely to be on medications. a severe beating caught on tape. now the feds are being asked to look into why these cops attack ad drunk driving suspect in minnesota. coming up, graphic video and why the police may now been the suspects. plus, disturbing new details in the double murder of a couple in florida with 17 children. many of the kids have special needs now there is word one of these kids told cops saw using sign language. it'ssc a new development in this murder mystery coming up to keep a toilet clean. see sunday's paper and save a dollar...

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afghanistan. they will not be going to the polls because of the taliban. constant threats being reported. the taliban have vowed to disrupt the vote and today, word of one of the strongest threats yet. in afghanistan, you may remember voters get a finger inked for balloting. today a group of taliban fighters made an announcement in one village. anyone, anyone caught voting will have that inked finger removed. greg palkot has more on this thursday's afghan election. he spoke with villagers in one town. ♪ >> in the helmand province village not much different than many afghan towns. water pumped well. goats herded, grains sorted and regular visits from threatening dangerous taliban militants. in man too afraid to show his face tells me he doesn't like the taliban and they don't like him. this taliban says killed one of his sons and drove his family out of another town.

>> we want to go back to our houses. the marines is visiting the hamlet. the locals tell us they like the marines here. providing aid and some security. >> that's the case now. but, you know, tonight when the taliban come, in before the taliban, which you can't really blame them, they have got to stay neutral a key question for some the villagers we have spoken to here in the town of afghanistan, what happens if the marines leave? left alone to fend off the taliban. >> it's felt reason why locals are still staying on the fence is because of their uncertainty about the u.s. commitment. if the marines were remain, the man says, then that's good. as for this week's presidential elections as many other villages there probability won't be any voting here. the taliban risk is high. which doesn't matter to this little guy. there is no need to vote, he says. we already have our president. had me karzai. in afghanistan. greg palkot, fox news. shepard: new information in the

murder of a wealthy florida panhandle couple known for adopting special needs children. today they released crime scene reports and witness testimony. the documents indicate mellowed billings was shot in the head nose eye and temple device in the head. her husband shot each of his beg legs in twice in the back of the head. nine of the children were home according to the authorities. the documents reveal one of those children told police what he witnessed by using sign language. the police sergeant who arrested a harvard professor and wound up having a beer with the president is thanking his colleagues now and they, in turn are showing that sergeant some love. [ applause ] sergeant james crowley walking up to help open the fraternal order of police convention in california today. involved in controversy last month in cambridge mass. sergeant crowley responding to a report of a possible burglary

and ended up arresting the harvard scholar henry gates at his home. first criticized before ending up at beer summit. happy hour made for the history books. today he thanked his fellow officers for all of their support. >> the past month has been very difficult for my family, my friends and my colleagues back in cambridge. it's no exaggeration to say that it wouldn't have been as easy to handle this without the support of the fraternal order of police. shepard: he kept things brief. 40 seconds total. he still got a standing ovation from the more than 3,000 police officers in attendance. a traffic stop beating caught on tape. and now the fbi is checking it out. the top story on a fox trip across america. minnesota. the attorney for 42-year-old darryl jenkins released the tape of the february traffic stop.

minneapolis police say jenkins was stopped for speeding. they say he smelled of alcohol and was uncooperative. the officers punched, kicked and tased jenkins three times. he spent four days in jail. the police chief says he is asking the fbi to look at the tape because the actions of some of the responding officers concern him. oklahoma, the owners of an auto dealership in freyer found a different way to deal with some of the old cars they get through that cash for clunkers program. the program let's drivers turn in old cars for more new fuel efficient ones. near not only do they become scrap. the dealership creates plenty of goodwill it? >> was fun to watch. >> awesome it? >> was cool! >> it was awesome. shepard: texas, fire destroying an apartment building in beaumont. no word of anybody hurt. local reports say the fire killed several pets. almost two dozen families left homeless. washington. the fastest docks dash hounds

got to show their stuff. the wiener dogs go all out. the track has been holding these popular races for the past 13 years and they are part of a fox watch across america. the mayor of milwaukee, wisconsin released from hospital after being beaten near the wisconsin state fair over the weekend. tom barrett is his name. he ended one a fractured hand, gacious on his face and two teeth knocked out. police say the mayor seen here was helping a woman trying to protect her grandchild from a 20-year-old man when the guy attacked the mayor with they believe a metal pipe. the suspect ran from the scene but later arrested. police say he has a long arrest record. mayor barrett's brother says the mayor is in good spirits and this afternoon president obama called him. the white house says the call was to see how the mayor is doing. and to commend him for his

bravery. fox news politics now. and one candidate is in and another two major races for governor. the first in texas. kay bailey hutchinson kick off her campaign in her hometown of la mark. the first stop on this week's 19 city announcement tour. running against republican governor rick perry in the g.o.p. primary next year. perry took office in 2000, has become the longest serving governor in state history. senator hutchinson says as governor she would push for limit on the amount of terms a texas governor can serve. worth noting back in 1994, senator hutchinson promised to put a self-imposed limit on her own time in the senate and broke that promise in 2006 to successfully run for a third term. and in wisconsin, governor jim doyle today said he will not run for a third term because he believes governors should limit themselves to just two terms in office. the democrat reports he made the announcement early so that other candidates could stop building

their campaigns for next year's election. governor doyle expected to serve out the full term. hundreds of billions of our tax dollars went toward a stimulus that was supposed to help make everything better. the president says it has. now, months later, did the cash really pay off? we will hear what people are saying on both sides. plus, we will tell you about a knew study that paints wally frightening picture of what could be in store as we recover from this recession. that's coming up. hñí9?

shepard: major trouble tonight for one of the country's most recognized brokerage firms. charles swab. talk to chuck. he is being sued by the new york attorney general andrew cuomo. he claims that the company mislead investigators about the safety of their money. the investments in question are called auction-rate securities.

they were originally pitched as being safe. but when the markets began collapsing this year, so did those investments. the lawsuit aimed at forcing schwab to pay back those investments at full value. now, keep in mind, charles schwab looks at more than 9 million banking account and retirement plans around the world. sandra smith is from the fox business network. she is here with us. first off give us an idea what type of investments we are talking about here. >> auction rate securities are a type of investment security. they're usually issued by big places such as municipalities. municipalities use them, why? because they get long-term loans at short-term interest rates. really gives them the lower rate. but that rate is changing very frequently on a periodic basis. and basically it's at these auctions. that's where it guess the name. those auctions should give the investor the ability to turn over their investment. ideally, it gives them the ability to get out of that investment any time they want. shepard: ok. explain out these stack up in this lawsuit. >> right, so the lawsuit alleges that charles schwab and this is

the new york attorney general alleging that charles schwab miss led investors, lied to them over the risks involved with securities. in particular how easy it would be for them to get out of them when they want. in theory, one should believe that investor could turn it over and get out when they want if there is a buyer in that market. but, shep, what happened last year is the market for these auction rate securities completely froze up. leaving charles schwab investors sitting bon $800 million stuck couldn't get out. shepard: we forget how almost everything collapsed. sandra smith, thanks a lot. president obama says his stimulus package has helped turn the economy around. i cite as lot of statistics to prove it a new poll to suggest many americans just don't belief it's done much of anything to stop the bleeding. as you know, congress passed the 7 7 billion-dollar stimulus back in february. it was designed to create jobs, jump start the economy. but, according to a "u.s.a. today" gallup poll 57% of americans say stimulus is having

either no impact on the economy or making it worse. only 18% believe it's done, well, anything to improve their personal situation. this as a new report suggests the high rate of unemployment will continue through the next decade. james rosen is live in the d.c. news room. james, is this a matter of perception or reality? it's a sober forecast. rate cut down to only 8% and still floating above 6% a decade from now. this is the picture of a jobless recovery from this current recession as forecast in a new report by an economist in a researcher who both work at the federal reserve bank in kansas city. in terms of job losses, this current recession ranks alongside the two worst in post war history. the watergate era '73 to '75 and ronald reagan's first two years in the white house. those years ended in sharp and happy declines in unemployment. fast forward to the recessions

of the earlily 1990s and early 2,000s, both shorter and less severe both ended without any significant games on the job fronz. these are so-called jobless recoveries that is the likely scenario this time around due to two developments. much greater use over the last two decades of temp workers and outsourcing. check out this chart. the smaller portion of the bottom of the screen reflects the percentage of the workforce that gets laid off temporarily. the much larger portion shows permanently laid off workers. imbalance that has only grown over time and never been worse at the extreme right of the chart than today. also, shep, part of the current problem, the banking crisis. the author studied similar crisis in spain findlay japan most recently. they found that high unemployment tends to stick around even after a recession has ended, shep? shepard: james rosen life in our d.c. newsroom. here is something that will help cash-strapped families. free food for the kids. some restaurant chains are

offering just that to try to encourage parents to take the family out a little more often. i hop started the trend. becoming the first national restaurant chain to let kids eat free seven nights a week for the next month. i hop is not alone. other deals out there? the furniture and house stuff store ikea offering free food for kids at participating spots. the italian chain fazoli's expanding kids eat free deal to weekends. he will torito offering free chow for children on saturdays until 3:00. a follow-up for, well, you know, another drawing in the lottery. still no winner. the jackpot in italy grows to the equivalent of $2.87 billion. no one has won this lottery since january. people are flying in from other european nations just to get a chance to win europe's biggest jackpot ever. the next drawing set for tomorrow. you may remember him as the hammer.

former congressman tom delay has resigned three years ago in the middle of all kinds of scandal. now, it's reportedly working hard preparing for a new gig. on the dance floor. at your house. that's next. - ( rock music playing ) - ♪ oh!

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or one of our coastal soup and grilled shrimp salad combinations? eight dishes that fit into your lunch hour... starting at just $6.99. at red lobster. shepard: top stories in a moment but first it's hammer time. abc dancing with the stars has announced the season contestants and top ago list with a were were former republican house majority leader tom delay. nicknamed the hammer for being able to keep them in line. his abilities on the dance floor are not well steakd. though he has never been afraid to step on a few toes. he joins no less than 15 other celebrity contestants on the popular show when it kicks off next month. top story update now. mixed messages from the white house. whether president obama's health care plan must include a government-run insurance program known by the white house as the public option. and federal prosecutors have charged a man in florida in the

largest credit and debt card scam in history. a theft case really the feds say the suspect tried to steal 130 million account numbers. and on this day in 1969, hurricane camille slammed into the mississippi gulf coast as one of the most powerful hurricanes of the 20th sen trismt the fast-moving storm had become a hurricane just three days before. it had strengthened to a monstrous category 5 in fewer than 48 hours. for many, there was simply no time to board up or head to higher ground. camille hit with a 25-foot storm surge. winds estimated nearly 200 miles per hour. in the end, the storm killed more than 250 people and caused billions of dollars in damage. the most devastating storm to hit the gulf coast until katrina. camille was one of only three category five storms ever to make landfall in the last century. the devastation happened 40 years ago t